Oil firms to lose Rs 1.74 lakh crore on fuel sales in 2011-12

State-owned oil firms will lose a whopping Rs 1,74,000 crore on selling fuel at government-controlled rates this financial year, 68 per cent more than what they lost when crude oil touched an all-time high in 2008-09.

Indian Oil, Bharat Petroleum and Hindustan Petroleum will "at current international crude oil prices lose Rs 1,74,126 crore in revenues on selling diesel, domestic LPG and kerosene below their imported cost in 2011-12 fiscal," a government official said on Monday.

The revenue loss, termed as under-recovery by oil firms, will be the highest-ever, even more than what they lost in 2008-09 when crude oil touched an all-time high of $147 per barrel.

The three oil firms currently lose a record Rs 16.76 per litre on diesel, Rs 28.33 a litre on kerosene and Rs 315.86 per 14.2-kg domestic LPG cylinder.